Now that we have introduced you to Skills to Mills, we will go into detail about the basics of life. These are the basics that you will have to understand in order to make better decisions.
Life is pretty short, and we only have one life here on planet Earth.
So, it would make a lot of sense to make the most out of it, and that includes becoming financially independent! This way you will be able to enjoy your life to the fullest!
First we illustrate some basic calculations about how much time we all have been given:
- Let’s assume we only become 80 years old on average;
- This results in 80 years x 365 days, which is 29.200 days;
- This results in 29.200 days x 24 hours, which is 700.800 hours;
It is of extreme importance to understand that we only have about 29.200 days!
Now read a little further and find out why this is so important to understand.
The three main phases of life are as follows:
- Your schooling phase: Day 1 to day 7300 (0-20 years old);
- Your working phase: Day 7301 to day 23.725 (20-65 years old);
- Your pension phase: Day 23.726 to day 29.200 (65-80 years old);
All of the above are only approximates as this website is international and only for informational purposes!
Why is it so extremely important to understand that we only have about 29.200 days?
As you can see above, our schooling phase takes about 7300 days of our lives, which leaves you with only 21.00 days left at age 20.
Now, let’s say that you are extremely lucky (unlike most other people) and truly understand the magical power of compound interest at age 20.
Your own parents probably don’t understand this, otherwise they would have activated the power of compound interest for you as soon as you were born on day 1!
If you would start investing at age 20, you would be a very fortunate kid, because you have so much time left in your life to let compound interest work for you.
Unfortunately, most people find out about this too late in their lives, and some never. As we have pointed out in chapter 1: The Basics, one of the problems is that we don’t learn proper finance in school, or from our parents.
What makes the basics of life so extremely important to understand is that we should start investing as early as possible. This will make all the difference in being able to become financially independent, which relatively few people succeed with!
In Chapter 1.3. Compound Interest we will go into detailed calculations about compound interest to make you fully understand the things that we are trying to make clear.
Relax and take it easy, if you read our entire website as we have intended it to be read, you will learn everything systematically and professionally!